Sunshine Bank Money-laundering Trial Begins

August 6, 1985|By JEFF HARDY, United Press International

MIAMI — The federal racketeering and money laundering trial has begun for two former Sunshine State Bank officials and three other men allegedly involved in an attempt by drug smugglers to gain control of the firm.

Authorities believe the trial, which began Monday, is the first in which bankers are charged with helping drug smugglers become the major partners in a financial institution.

Suspended Sunshine chairman Ray Corona, 35, and his father, former bank president Rafael Corona, 63, are on trial with Manuel Lopez-Castro, William Vaughn and Gerardo Guevara.

A sixth defendant, Jose Antonio Fernandez, pleaded guilty in March to all 17 counts in the indictment. U.S. District Judge James Kehoe sentenced him Thursday to 50 years in prison.

Fernandez, Guevara`s brother-in-law, was expected to be a key government witness. But after his sentence was announced, defense attorney Humberto Aguilar said Fernandez may not cooperate with the government.

Fernandez admitted that he led a marijuana operation responsible for smuggling 635,000 pounds of marijuana with a street value of $250 million from Colombia into Florida, Texas and Louisiana.

Money from the scheme allegedly was used to buy a controlling interest in Sunshine State Bank. The money was processed through Panamanian banks before being invested in Sunshine State so the source of the funds could not be traced, said an indictment handed up by a federal grand jury in December.

At the time of the indictment, Executive Assistant U.S. Attorney Leon Kellner said the government would seek forfeiture of the stock interest in the bank owned by the defendants.

Federal prosecutors have compiled more than 31,000 documents for the trial, which is expected to last about four months.

The trial marks the height of a bitter battle between the Coronas, who are Cuban immigrants, and the federal government, which for years has been trying to oust the family as officials of the small bank.

The Coronas filed their own suit against the government in January, charging the FBI and the Federal Deposit Insurance Corp. with violating the rights of the bank. The $120 million damage suit also said both agencies discriminated against blacks, Cubans and other Hispanics and sought to cause the bank to become insolvent.

Attorney Donald Bierman, who represents the Coronas, said the FDIC was vindictive. The FDIC had been trying for a year before the indictment to remove the Coronas as Sunshine State Bank officers.